YEAR IN REVIEW

FINANCING COMBATTING CLIMATE CHANGEUNECA, Tunis, 3 October 2012

Drought Agriculture

Malawi Sudan

Ethiopia Senegal

Zimbabwe Zimbabwe

India Mali

Mozambique Zambia

Niger Morocco

Mauritania Niger

Eritrea India

Sudan Malawi

Chad Algeria

Kenya Ethiopia

Iran Pakistan

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Two Key Climate Threats:Top 12 Countries Most at Risk from Each

Instruments to Combat Climate Change

•Quantitative Instruments:▫E.g. limits to emitting greenhouse gas

emissions (Kyoto Protocol);•Pricing Signals:

▫Kyoto Instruments: emissions trading, CDM, Nationally Appropriate Mitigation Actions (NAMAs)

•Financing Policies & Measures:▫Funds in support of Policies, Measures, and

Projects.

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Climate Finance Available in Africa Multilateral Financing

Bilateral Financing

Multilateral Financing

Institutions

Carbon Finance

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Potential for Future Domestic Funds to Combat Climate Change ?

Fut. Green Fund

Status of Carbon Finance• Africa is a small emitter of greenhouse gas emissions,

but potential for reduction of emission growth paths nevertheless important.

• Carbon finance potential remains largely unexploited in Africa. ▫ Limits to the Carbon Finance Model in Africa (only 3% of

projects globally in 2009)• Carbon Market in Crisis due to lack of follow-up on

Kyoto Protocol• Extension of the Kyoto Protocol and Reform of CDM

▫ The Kyoto commitment period has expired;▫ The model of implementation of the CDM has to be reformed

– high transaction costs and long gestation periods.

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What are NAMAs?• NAMA: Nationally Appropriate Mitigation Actions

• Part of Bali Action Plan (2007, para.1(b)(ii)) at COP13 referring to voluntary mitigation measures for developing countries post 2012

• Definition: voluntary governmental interventions of a developing country leading to greenhouse gas emissions reduction▫ Potentially bigger magnitude as the project-based activities under the CDM▫ In sink with the overall development needs of a country

• NAMAs have to:▫ Contribute to a country’s development;▫ Mitigate climate change to climate change;▫ Needs to be appropriate to the local environment of where it is employed;▫ Be measurable and verifiable.

• Types of NAMAs: ▫ Unilateral : realized on the basis of domestic resources▫ Supported: in need of international support▫ Credited: production of certified GHG emission reductions that may be sold on the

international carbon market

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Range of Pricing Instruments

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CDM Projects CDM Program of Activities NAMA Sector-based

approaches

Measures at the level of sub-sector

Capacity Building

Volontary program

Entire sector is targeted

Scope of Mitigation Measure

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Partnership for Market Readiness• World Bank initiative launched in December 2010

• Objective: capacity building for those countries that would like to develop policy instruments for a post-Kyoto (post 2012) carbon market.

• Some figures:▫ 10 contributors towards a total of US$ 75 million▫ Preparation grant of about US$ 350,000▫ Implementation grant between US$ 3 et 8 million▫ 15 countries benefit to date (Africa: Morocco, South Africa)

• Morocco has joined the PMR in 2012. The «Market Readiness Proposal » is under preparation.

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Partnership for Market Readiness Post-Kyoto: the case of Morocco

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www.worldbank.org/climatechange

fmissfeldt@worldbank.org

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